Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

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Tesla is known for everything from electric cars to solar panels, and that little bit about over-promising and under-delivering. It is an organization full of programmers and innovators, but even its latest mve raised eyebrows.

Insurance?

Underwritten by State National Insurance Company, Tesla Insurance offers insurance plans for customers who have Teslas. Those insurance plans are supposed to be 20 – 30 percent lower than rates with other companies.

The company writes on its blog, “Because Tesla knows its vehicles best, Tesla Insurance can leverage the advanced technology, safety, and serviceability of our cars to provide insurance at a lower cost.”

So, what does this look like, in California and other states?

That’s what we’re about to show you.

We know insurance is important to you. The advantages of car insurance are numerous. It protects you and your family from financial losses, whether they are from damaged cars, fractured arms, or lost wages.

But, in your research, you may have found that car insurance can be confusing. There are technical terms like “deductibles” and “premiums,” issues with rates by a thousand different factors, and pesky loss ratios.

We understand. We’ve got you covered.

In this complete guide to Tesla car insurance, we’ll cover everything from Tesla’s financial ratings, its company history, its website, and, of course, its rates.

Keep in mind that each company prices Teslas differently in terms of insurance, so these numbers aren’t exact. One of the issues is these statistics take into account all cars, including gasoline-driven ones.

Electric cars are often more expensive to insure than gasoline-driven cars due to the price of the parts being used and the difficulty in finding a mechanic that can work on them.

So, why does Tesla believe it can offer a 20 – 30 percent discount? There are a few reasons.

First: Tesla has high confidence in its advanced safety features and is prepared to lower rates accordingly

Average Tesla Male vs. Female Car Insurance Rates

Average Tesla Commute Rates

Tesla is not particularly open about which factors it includes what it sets rates.

However, it notes on its Tesla Insurance support page that “the cost of each Tesla Insurance policy varies based on the individual, including their driving record and other factors that can typically impact a person’s insurance rates.”

Average Tesla Credit History Rates

California does not allow insurance companies to set rates based on a person’s credit history. Other states are following suit.

Tesla Auto Insurance Coverage

We know that coverages are important to you. More coverage means more protection and with a Tesla, a $40,000 car (at least), that’s important.

But you may have found your research to be confusing. Some insurances are fairly well-known like liability, collision, and comprehensive. But there are some like medical payments that are not as well known.

Researching them may have given you a headache. We get it. In this section, we cover Tesla’s coverages, discounts, and its programs.

Let’s head down stretch four.

Tesla: Types of Coverages Offered

It is an unknown which coverages Tesla will offer, as it has none listed on its website. However, there are some typical coverages that companies offer.

Six are personal auto coverages.

Personal Auto Coverage

Purpose

Example

Bodily Injury Liability

Will pay for the other drivers' medical bills/loss of income in an accident you caused

When the 25-year-old rock star you hit has broken his strumming hand

Property Damage Liability

Will pay for the damage to the property in an accident you caused

When the policeman insists you pay for hitting his vehicle

Personal Injury Protection

Pays for your medical bills/loss of income after an accident

When someone T-bones you and you get a strained neck

Uninsured Motorist

Helps you when you are in an accident with a driver who's uninsured

Because drivers in American have no chill

Underinsured Motorist

Helps you when you are in an accident with a driver who's underinsured

Because some drivers in America have more chill than others

Medical Payments

Helps pay for you and your passengers' medical costs after an accident

One discount Tesla has made clear it won’t have, at least initially, is telematics. This is fairly common with other insurance carriers and involves installing an app that monitors driving.

Tesla doesn’t have this now but indicates it might in the future.

Tesla’s Programs

For its own insurance, there doesn’t appear to be a special program. However, at one point, it had a program through a partnership with Liberty Mutual.

It was called InsureMyTelsa and was supposed to lower rates for Tesla drivers, who had high rates even compared to other luxury car owners.

As of now, there’s no evidence of that program on Tesla’s website. It appears that it might have been shelved, as customers still complained of high rates and Tesla decided to roll out its own insurance program.

Customers are somewhat mixed about Tesla, giving it a 3.1 out of five stars out of 96 reviews. There were 1,200 complaints closed in the past three years, which is more than GM, Ford, or Toyota.

Moody’s Rating

Moody’s is considered one of the big three financial rating agencies in the United States. It issues credit ratings, economic outlook ratings, and overall financial strength ratings.

Moody’s gives Tesla a B3 rating. What does this mean? According to Moody’s methodology, “obligations rated B are considered speculative and are subject to high credit risk.” A 3 is the lowest sub-rating in the B category.

This B3 rating is for Tesla’s long-term global outlook, based on evaluating credit levels and the amount of revenue coming in. The company is considered stable and not on watch.

S&P Rating

Standard and Poor’s (S&P) is also considered a big three financial rating agency in the United States. Like Moody’s, it issues credit ratings, economic outlook ratings, and overall financial strength ratings.

S&P gives Tesla a B- rating. This means, according to S&P’s methodology, that Tesla is at a higher risk of nonpayment than those with a BB or above.

It is still able to meet its financial obligations but may have trouble under adverse economic conditions.

The S&P wrote in May when it upgraded Tesla’s ratings, “The negative outlook reflects risks related to weaker than expected demand, ongoing profitability challenges, and the company’s lack of free cash flow over the next 12-24 months.”

It added that due to these factors and Tesla’s rising financial commitments, the company’s financial position might be unsustainable.

Consumer Reports

Consumer Reports (CR) is an organization that allows consumers to rate their satisfaction with a company. It also rates products, such as mattresses, vacuum cleaners, and cars.

CR has not been positive about Tesla’s vehicles. The highest-rated vehicle is the 2019 Model S (78 out of 100), while the lowest is the 2019 Model X (just a 55).

However, in spite of the low CR ratings for Tesla’s vehicles, Tesla’s customers are satisfied, coming in at the top of all car manufacturers. Its customer satisfaction rating is 89 out of 100.

Consumer Affairs

Consumer Affairs is a bit like CR without product reviews. Instead, it is a site where customers can rate a company and leave reviews.

Overall, consumers had mixed feelings about Tesla, giving it 3.2 out of five stars from 328 reviews. Some of these complaints had to do with customer service or the repair process. The purchase process was lauded by some.

Tesla History

Tesla was founded in 2003, the name in honor of Nikola Tesla who, along with Edison, was one of the two most impactful inventors of the late 19th century.

Its goal to supply American households with affordable, quality electric cars was simple in theory but difficult in execution.

Still, it attracted investor after investor, with current CEO Elon Musk supplying money each round. Today, the name is synonymous with electric cars and innovation. Flash and glam and great car release nights.

But we know that you might care more about a company than just its products.

How it treats its employees, what it does in the community, even its position for the future can all play a role in whether you sign-up for them or not. How does Tesla measure up in these regards?

We’re heading into stretch two.

Tesla Market Share

There are two components to Tesla’s market share. The first is the geographic area, such as California, the United States, or global. The second is between the electric vehicle (EV) market and the whole automotive market.

When it comes to the first, Tesla’s market shares are fairly small.

In California, Bloomberg reports that Tesla’s market share for all automobiles is 4.2 percent. In the U.S., that number is around 2 percent, according to Statista.

And while it’s tough to gauge its market share worldwide, The Driven reports that Tesla tripled its market share in Europe in the first half of 2019 from .16 percent to .54 percent.

The reason for the rise is from the Model 3 electric sedan, which, when released, became a best-seller in 2018. Due in large part to it, California’s EV market share rose above 5 percent for the first time.

This car has also helped Tesla further dominate the U.S. EV market, with 60 percent of all EV purchases in the first quarter of 2019 being a Tesla 3. That contributed to an overall EV market share of 50 percent.

What does this mean for insurance? As we’ll see, Tesla’s insurance only applies to Tesla owners, meaning that the larger its market share, the more potential customers it has.

Tesla’s Position for the Future

Tesla’s future seems both bright and uncertain, a strange mix for a company that currently dominates market share in an upcoming industry segment.

While it generates roughly $5 billion in revenue each quarter, it scales up its production often dramatically, causing it to lurch in an uncomfortable financial position.

Moody’s and Standard and Poor’s both rate Tesla in the middle tier. This means it has a higher chance of not meeting credit obligations (paying back debt) than other, more highly-rated companies.

Standard and Poor’s actually rated its outlook as negative.

But there’s always the flip side. It dominates an up-coming market segment in electric vehicles, has the brand name to get people’s attention, and soon will be producing vehicles that appeal to middle-class workers.

This should all increase its revenue and market share significantly, especially if taxpayers are continuously rewarded for buying electric vehicles and the market shifts in that direction.

And then there is the insurance angle, which is why we’re here today. Tesla’s insurance is just for Tesla owners, meaning that the more it grows in market share, the more customers it might have.

All of which, we’ll cover in the rates section down below.

Tesla’s Online Presence

Tesla has four social media outlets where it posts videos, images, and more.

YouTube

Facebook

Twitter

Instagram

Each has hundreds of thousands, if not over a million followers.

Tesla’s Commercials

Tesla doesn’t have commercials per se, and as of late May had never spent a dime on paid advertising. But it has a YouTube channel, and some of the features there might be classified as commercials.

These include customer stories.

Tesla taxi brothers:

A Model S Family in Korea:

The Electric Family:

Tesla in the Community

Corporate stewardship arises from the understanding that a company cannot exist as a separate entity from a community, whether that is a neighborhood, a city, a country, or the world.

As such, a company has a responsibility to act for the betterment of those communities, whether socially, economically, or through environmental issues.

Tesla does no straight work in the community. Or at least it doesn’t publicize it. Instead, it focuses on stewardship with a particular angle, one that falls in line with its products and mission.

That is environmental stewardship, the practice of improving our quality of energy sources and reducing our dependence on fuels that harm the environment.

To this end, its work in countries like Samoa or a continent like Europe aims to reduce dependence on fossil fuels and create energy that relies on natural sources or those that reduce overall energy consumption.

To promote this, it has uploaded videos to YouTube to represent success stories in its quest to change the world.

Samoa:

SoCal powerpack installation:

Hawaii:

Tesla’s Employees

We know commercials and corporate stewardship are important, but another part is, as well. How Tesla treats its employees can be seen as a reflection of the company’s priorities.

So what do employees think about it, and are there any awards that Tesla has won for company culture?

We looked at Forbes for the latter. Tesla has won awards for diversity, the inclusion of women, and a launching pad for new graduates.

Its employees are not necessarily positive about Tesla, though its ratings on Indeed are similar to the ratings from major insurance companies like Allstate and Farmers.

Their qualms, including a brutal work schedule and some insecurity for their jobs, have been covered in detail by some outlets. On the other end of the ratings are the pay and benefits, the top-rated category.

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How to Make a Claim with Tesla

If you’re in an accident or have another accident, the last thing you want is to have a stressful claims experience.

Tesla writes on its website, “To report or track a claim on an existing Tesla Insurance policy, call the number on your insurance card, which is available to download through your Tesla Account. An assigned claims specialist will support you through your entire claims experience.”

Even further, Tesla will pair you with Tesla Body Repair Centers where available, “which offer a quicker assessment and direct interaction with a specialized adjustor.”

Tesla: How to Get a Quote Online

So, you’ve decided you’re interested in Tesla Insurance and want to get a quote. There are a couple of options.

If you have an account, you can log in and get a quote online

If you don’t have an account, you can call 1-844-34-TESLA (1-844-348-3772).

Tesla doesn’t have in-person agents or physical agencies so you’ll be dealing directly with the company.

Easy enough right? But most importantly, you will want to compare rates so you know you’re getting the best auto insurance rates. Enter your info on multiple company websites is time-consuming, but we make it easy. Just enter your zip code on our page and compare multiple rates in a matter of minutes.

Design of Website & App

We know there might be nothing more frustrating than trying to find answers through a company’s website if that site is confusing and poorly designed.

In this section, we take a look at Tesla’s website and app to see if they’re user-friendly. And if they have all the functionality you would assume of a technology company.

Website

Tesla’s website is a storefront for its products, including its cars, solar panels, and insurance.

When you go to Tesla’s homepage, this screen pulls up.

Click on the three bars at the top right and insurance is one of the top selections.

You can also check out the charging section.

The main links at the top are for its cars. You also have a link to the energy section, which takes you to Tesla’s energy branch.

How easily can you find answers?

If you’re searching for an answer, you have two options.

Click through the links for more information

Go to its Support page and use its search bar

There is not a search bar for the entire site.

Is the design a plus or minus?

The site is laid out well, with easy access to numerous parts of the company. It’s well organized and easy to navigate.

Mobile App

As Teslas are electric cars with advanced technology features, the app provides crucial functions. According to the iOS page for the app, there are at least 12 functions you can do with the app.

Check charging progress in real-time and start or stop charging

Heat or cool your car before driving – even if it’s in a garage

Lock or unlock from afar

Locate your vehicle with directions or track its movement

Those are just four. The app is well-reviewed on iOS and Google Play.

iOS: 3.8 2,200 reviews

Model 3 Mike: “Being able to adjust and readjust the climate remotely from my phone, including individual seat heaters, defrost, cabin temp, has been great this winter.”

Google Play: 4.7 8,433 reviews

Balamuhunthan Bala: “Love the app so far… great at the response and the functionality behind is far ahead than anything I have seen…..”

The Bottom Line

Tesla is a company that inspires enthusiasm and trepidation at the same time.

It produces inventive ideas like car insurance for Tesla owners but incurs hundreds of millions of dollars’ worth of losses on occasion as its attempts to expand put stress on its revenue streams.

The vision for a world that is not reliant on fossil fuels, one that helps out the environment, is admirable. But Elon Musk sets an example that is tough to match and might put stress on Tesla’s workers’ work-life balances.

Its insurance proposes to cut rates by 20 – 30 percent compared to other insurers but there is uncertainty as to how it will succeed.

Fortunately, it has a stable underwriting partner in State National. It has an A rating from A.M. Best, meaning it has an excellent chance to meet its ongoing insurance obligations.

Will Tesla Insurance succeed? There’s no way to know for sure. However, if it goes like the other parts of Tesla, it will be an interesting ride.

Tesla Car Insurance FAQs

Every company as frequently asked questions. Here are five about Tesla Insurance.

Is Tesla insurance expensive?

Tesla Insurance is supposed to 20 – 30 percent cheaper than other insurance from other carriers. A brief look at a Reddit thread about the rates indicates many users’ rates were decreased. However, the algorithm is still being adjusted.

When will Tesla insurance be available?

Tesla insurance launched in late August. It is available now but only in California and only for Tesla owners. There are plans to expand the insurance availability nationwide, but there’s no definitive date on that expansion at this writing.

Who underwrites Tesla insurance?

State National Insurance Company underwrites Tesla Insurance. It is a subsidiary of the Markel Corporation, which underwrites companies in many industries, including property and casualty insurance. State National has an A rating from A.M. Best.

How does Tesla insurance work?

Tesla purports that its insurance is 20 – 30 percent cheaper than other insurers’. It does this by taking advantage of Tesla cars’ advanced safety features, pairing owners with Tesla Body Repair Centers, and cutting out agents by selling insurance directly.

How do I buy Tesla insurance?

Tesla doesn’t have any in-person agents or insurance shops you can drop into, so you have to purchase insurance directly through the company. You can do so through its website or by calling 1-844-34-TESLA (1-844-348-3772).

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